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[BUSINESS] · United States, Iran, Saudi Arabia, Israel · 14 sources

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Oil prices drop as US-Iran talks and Saudi pipeline restart ease supply fears

Global oil prices have experienced a significant downturn, marking the longest losing streak for Brent and WTI crude in over a year. Brent crude has fallen below the $99 per barrel threshold, while West Texas Intermediate (WTI) has dropped below $90 per barrel.

The decline is driven by two primary factors: easing geopolitical tensions and anticipated increases in supply. Investors are reacting positively to reports of a three-hour meeting between US and Iranian representatives at the United Nations, which President Donald Trump described as 'very good' and 'very productive'. This diplomatic progress has reduced the geopolitical risk premium previously affecting the market.

Simultaneously, supply concerns are easing as Saudi Arabia begins restarting its strategic East-West Pipeline, which had been offline following drone attacks. The pipeline is expected to eventually transport approximately 4 million barrels per day to the Yanbu port on the Red Sea. Additionally, US crude oil inventories rose by approximately 1.8 million barrels, contrary to analyst expectations of a decrease.

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Brent crude · Donald Trump · Ibex 35 · Iran · Saudi Arabia · Saudi Aramco · United Nations · United States

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